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The Spice & Tea Exchange
The Spice & Tea Exchange franchises operate retail stores that sell spices, herbs, teas, spice blends, rubs, olive oil, salts, sugars, candles, honeys, and related products and accessories in a distinctive environment following the franchisor's System. Franchisees can pursue a Unit Franchise for a single store or an Area Development agreement to open and operate multiple stores in a defined geographic area. The business model relies on retail sales to consumers interested in gourmet culinary ingredients, teas, and accessories, targeting home cooks, food enthusiasts, and gift shoppers.
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Franchise Costs
7% royalty (greater of 7% of Gross Sales or $1,750/mo) + 1% System Development Fee + $300-$800/mo Subscription, Support & Inventory Management Fee + $90-$150/mo Integrated Music System Fee
Financial Performance
Item 19 Financial Performance
Data Based On: Data for average gross revenue and median gross revenue is based on 83 franchised units and 1 company-owned unit open for the full calendar year 2024 (Section I - All Comparable Units). Data for average gross profit is based on 35 multi-unit franchised stores open for the full calendar year 2024 (Section II - Multi-Unit Owned Stores).
* Average gross revenue is for 'Average Gross Sales – All Franchised Units' from Chart I-A (Section I) for 2024. Median gross revenue is from the notes for Chart I-A (Section I) for 2024. Average gross profit is for 'Average Gross Margin (dollars) - Multi-Unit Stores' from Chart II-B (Section II) for 2024, as this was the only explicit franchised gross margin data available (Chart I-B combined franchised and company-owned units). No net income, net profit, or EBITDA data was provided, nor sufficient expense data to estimate a net profit range.
Extracted Item 19 Section
Avg. Revenue: $542,747
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Unlock financial performance dataThe Spice & Tea Exchange Franchise Analysis
Ever walked into a store where the air smells like adventure—cinnamon, saffron, and exotic teas mingling in the aisles? The Spice & Tea Exchange taps into that sensory magic with its gourmet retail model, but the real intrigue lies in its FDD disclosures. Item 19 lays out revenue snapshots that surprise for a niche food retailer, while a hefty SBA loan history hints at accessible financing paths. What does this mean for your shot at owning a slice of this flavorful empire—steady performer or hidden risks?
Item 7 details the initial investment from $298,560 to $532,150, covering build-out for that immersive store environment selling spices, teas, blends, olive oils, and accessories. The $38,750 franchise fee gets you into a system franchising since 2008 with 93 locations (1 corporate), up 4% from 89 in 2023, projecting 7 new units. Fees bite with 7% royalty (or min $1,750/mo), 1% ad fund, plus $300-$800/mo for subscriptions/support/inventory and $90-$150/mo music—stacking to notable ongoing costs. SBA data shines: 41 loans averaging $210,915, default rate just 2.4%, signaling franchisees secure funding without much fallout.
Item 19 delivers solid financials—average gross revenue $542,747, median $486,926—respectable for specialty retail targeting foodies and gift buyers. With 3 transfers and growth ticking up, the system's stable, not explosive, fitting area developers eyeing multi-units. These figures suggest breakeven potential in year one for top performers, but watch the royalty floor in slower months; it's a lifestyle business with margins boosted by high-markup goods, ideal if you love culinary passion over volume chasing.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How The Spice & Tea Exchange Compares
Key Insights
- Higher investment than 80% of Specialty Food franchises
- Top 10 largest franchise system in Specialty Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
The Spice & Tea Exchange Current | $299K – $532K | $39K | 7.0% | 93 |
| EDIBLE ARRANGEMENTS | $214K – $587K | $30K | 5.0% | 680 |
| HONEYBAKED HAM AND THE HONEYBAKED HAM AND CAFE CO. | $514K – $830K | $20K | 6.0% | 212 |
| CANTEEN | $9K – $44K | $3K | 5.3% | 100 |
| GRAZE CRAZE | $167K – $326K | $50K | 6.0% | 89 |
| DOC POPCORN | $175K – $414K | $15K | 6.0% | 79 |
Specialty Food Average 15 franchises | $229K – $480K | $28K | 6.9% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 15 Specialty Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+23 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for The Spice & Tea Exchange franchisees (2013 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
41 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
156 franchisee contacts on file from official FDD filings.
156 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a The Spice & Tea Exchange franchise ranges from $298,560 to $532,150. This includes a franchise fee of $38,750. Ongoing royalty fees are 7.0% of gross sales.
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